Digital Payment Market

As per the latest report by Renub Research titled “Digital Payment Market Global Forecast Report by Type (Digital Commerce, Digital Remittances, Mobile POS Payments), Offering (Cards, ACH Transfer, Digital Wallet, Other Payment Modes), End User (BFSI, Retail & e-Commerce, Transportation & Logistics, Healthcare, Telecom & IT, Media & Entertainment, Others), Countries and Company Analysis, 2024-2032" the Global Digital Payment Market Size will reach USD 28.16 Trillion by 2032 compared to USD 8.97 Trillion in 2023 growing with a CAGR of 13.55%. The global digital payment market has increased considerably over the recent years. Payment are not only the lifeline of economizing but are increasingly being recognized as a means of gaining financial inclusion and ensuring that economic benefits reach the bottom of the pyramid. Thus, digital payment is a convenient, easy, fast, and secure payment process conducted online for procuring a product or service without utilizing cash. It is more dependable than conventional transactions as it is processed by secure gateways that are difficult to tamper with and allow users to pay directly from their banks.

Digital Payment Market Dynamics:

Notwithstanding, the rising number of online transactions has been instrumental in propelling the market's growth. Globally increase in customer preference for real-time payments is one of the significant factors driving the market growth. E-commerce service providers are trying to maintain their competitive positions by moving from traditional credit card and consumer finance solutions toward consumer engagement solutions like Transaction Risk Management, Application Program Interface, Payment Gateway, Payment Processing, Payment Security & Fraud Management, and Others that leverage digital payments.

Apart from this, the consumer inclination toward digital payments grew as people feared the risk of infection through cash payments, followed by the rapid spread of COVID-19 and the imposition of nationwide lockdowns. The COVID-19 has revived the adoption of contactless and wallet payments. EWallets are seeing increased traction for bill payments, Peer to Peer (P2P) transfers, and Customer to Business (C2B) payments for essential services owing to the lockdown and aversion to cash exchange. However, some wallet providers have raised their fees for consumers and merchants, leading to merchants not accepting their wallets for transactions.

Digital Commerce Segments to Generate the Maximum Revenue during the Forecast Period

On the basis of Segments, the global digital payment market is segmented into Digital Commerce, Digital Remittance, and Mobile POS Systems. The global Digital Commerce market has grown abundantly over the last few decades and continues to evolve and experience increased growth in developed and developing markets. The increasing preference of consumers towards online shopping is driving the demand for digital commerce globally. Digital commerce helps organizations to generate revenue via digital channels by incorporating mobile payments and mobile commerce.

The BFSI (Banking, Financial Services and Insurance) application to constitute a more extensive market size.

Based on application, the global digital payment market includes Banking & Financial Sectors, Hotels & Restaurants, e-commerce, Retail, Corporate Sectors, Public Sectors, Healthcare, Transportation & Telecommunication, and Others. The growing demand for digital remittance for cross-border and domestic transactions enables banks to embrace digital payment solutions. Besides, banks are also improving their offerings to compete with digital payment solutions providers, such as Amazon, Google, and Face book. For instance, the Bank of America presented a digital debit card to offer improved convenience to its clients.

In terms of payment mode, eWallets Segments generate a considerable market. E-wallets are the spine of the e-commerce industry. E-Wallets are prepaid wallets that require money to be packed before any transaction. It can be accessed on the e-wallet’s applications or website via laptops, tablets, or phones. Many e-wallet services, namely Paytm and free charge, work through apps in the users' smartphones. Further, it also enables the users to keep various cards and account numbers to a safe account. It is indeed an easy process once the account is set up.

Asia-Pacific account for the most Significant Share:

Geographically, Asia-Pacific is expected to lead the digital payment industry, with Japan and India set to gain more traction during the coming year. In Asia-Pacific, the adoption of mobile payments and digital wallets is likely to be higher than in other regions. India and China are high population countries; Smartphone penetration is increased due to lucrative opportunities for the digital payment market.

Besides, Digital payments are a relatively new trend in India. India has moved towards mobile payment and digital wallets after demonetization in 2016. Nevertheless, it is raising fast due to infrastructure upgrades, a favorable regulatory environment, high Smartphone penetration, and subsidized data plans. The Digital India agenda is a flagship program of the Government of India with a dream to transform India country into a digitally empowered society. (MeitY) Ministry of Electronics & Information Technology is working on strengthening digital payment infrastructure and building awareness through promotions of digital payments. ​

Competitive Landscape:

The key players of the digital payment market are highly fragmented. Market players like Paypal Holdings Inc, Visa Inc, MasterCard Incorporated, Amazon.Com Inc, Alphabet Inc. are focused on strategies like product innovation, research & development, partnerships, joint ventures, and geographical expansion to strengthen their market positions.

Market Summary:

·         Segments – Renub Research Report covered Digital Payment Market by Segments in the 3 viewpoints (Digital Commerce, Digital Remittance and Mobile POS Systems)

·         Methods – We have covered Digital Payment Market by Methods breakup by 5 viewpoints (Credit Card, eWallet, Debit Card, Charge and Deferred Debit Card and Bank Transfer)

·         Application – Our Report covered by application breakup by 9 viewpoints (Banking & Financial Sectors, Hotels & Restaurants, e-commerce, Retail, Corporate Sectors, Public Sectors, Healthcare, Transportation & Telecommunication and Others)

·         Platform – This Report covered by platform breakup by 2 viewpoints (Proprietary Platform and Marketplace Platform)

·         Solution – Global Digital Payment Market has been covered from 6 viewpoints (Proprietary Platform and Marketplace Platform), Solution (Application Program Interface, Payment Gateway, Payment Processing, Payment Security & Fraud Management, Transaction Risk Management and Others)

·         Region - Renub Research Report covered Digital Payment Market by Region in the 4 viewpoints  (Asia Pacific, North America, Europe, Middle East and Africa and Latin America)

·         All the major players have been covered from 3 Viewpoints (Overview, Recent Development, and Revenue Analysis) Paypal Holdings Inc, Visa Inc, MasterCard Incorporated, Amazon.Com Inc, Alphabet Inc